èHe thought in their political and economic situation they were not ready.

èHowever Mao generally favoured a rapid rate of change

Steps Towards Collectivisation:

Stage One:

· In 1951, was a step towards a more cooperative form of agriculture. Groups of 10 peasant households were grouped together to share resources. This was only for the poorer peasants, isolating the wealthier.

Stage Two:

· In 1952-3, the first Agricultural Producers’ Cooperatives (APCs) grouped together 30-50 households. Any profit was shared.

Stage Three:

· In 1953-5,period of confusing and contradicting directive by Mao. To meet target, peasant were often forced in cooperative that ran in debt.

· In 1953, Mao slowed things -> In 1954 he sped it up after ‘spontaneous capitalism’ was present.

· In 1955, Mao decided to push for rapid collectivisation

The Consequences of Collectivisation:

CPC control in countryside was strengthened

Collectivisation put the pace of change into question

Mao was convinced that material condition didn’t need to be the decisive factor in dictating the pace of change. [Caused catastrophic results later on]

The impact of agricultural production was disappointing. From 1953 to 1957(5 year plan) agricultural production grew only 3.8%. Grain production only increased 1%.

Peasants living standards are debatable

Spence

èBelieves peasants were better fed in 1956-57 than early 1950s.

Chang

èSaid peasants experienced severe hardship as result of collectivisation.

Industry and the First Five Year Plan

China had seen considerable industrialdevelopment before communist took control in 1949.

· In late 19thcentury foreign capitalist exploited China’s coal and mineral reserves. Cities like Beijing and Shanghai had become important industrial centres.

· Under GMD control in 1920s and 1930s, miles of roads and railways were built with an increase in coal, iron and steel production.

· In 1922, 78% of Chinese coal mines were in foreign hands.

·

Balance of payments:

Difference between what a country earns by exports and what it pays for imports